HUNTSVILLE, Ala. (WAFF) – On Wednesday, Tuscaloosa’s mayor was in Madison speaking with city leaders about an internet sales tax program.
He is trying to convince city leaders that the simplified seller’s use tax, or SSUT, is imbalanced and hurting Madison more than it’s helping.
It all boils down to the distribution of online sales tax across the state.
Madison city leaders were intently paying attention to the presentation from Mayor Walt Maddox because he said Madison could benefit by millions.
Every time you pay sales tax for online purchases, that tax goes to the Alabama Department of Revenue.
It then distributes that tax to state and local governments.
Mayor Maddox said the system is not working as it should, and cities are losing millions in the distribution process.
The SSUT sales tax collection system was adopted in Alabama in 2015.
But Maddox and many others say the program isn’t working the way it’s supposed to.
He said money is being collected and spent in the wrong places.
And he’s been trying to get lawmakers to close loopholes for years with no success, so he filed a lawsuit.
Several other cities and counties in Alabama have joined him
He adds that the Alabama Department of Revenue has refused to share any data on SSUT.
“Sales tax dollars earned in our communities are being shipped elsewhere, and that’s not fair to the people who pay sales taxes. The taxes that you pay in Madison, Alabama ought to stay in Madison, Alabama for your schools, for your police, for your fire, for your entire community. It’s just that simple,” Mayor Maddox said.
The Alabama Department of Revenue said it did not have a comment on the lawsuit at this time.
Madison City Council will not vote on a decision of whether or not to join Mayor Maddox’s lawsuit until a city council meeting.
Click Here to Subscribe on YouTube: Watch the latest WAFF 48 news, sports & weather videos on our YouTube channel!
Copyright 2025 WEAPON. All rights reserved.
